updated 04:50 pm EDT, Wed April 20, 2011

Apple blows out iPhone sales but lags on iPads

Apple in its fiscal results had mixed results for its devices that put it much further ahead than expected with the iPhone but disappointed some with tablets. Helped by the Verizon iPhone and a spike in AT&T adds, the company sold 18.65 million iPhones, a full 113 percent more than it did a year earlier. The growth put it past even its record holiday sales of 16.2 million.

The breakthrough put it ahead of RIM for the third quarter in a row as its rival shipped 14.9 million BlackBerrys during its most recent quarter. Android shipments aren't known. Google has said it's now seeing 350,000 Android activations a day but is counting all devices, not just phones, and didn't say when the activation rate started.

iPad results were partly disappointing. The company shipped 4.69 million iPads, which beat out its first two quarters on the market but didn't top the 7.5 million from the holidays. Apple is widely known to have faced major supply shortages due to demand and likely faced a lull as some buyers waited the nine days between when the iPad 2 was unveiled and when it shipped.

How well Apple will fare in the spring isn't as apparent this year. Unlike the past four years, Apple may wait until September to unveil a new iPhone and won't have a spike in sales to count on for June. The company may be helped by Android phone makers largely holding off until flagship phones like the Galaxy S II and Evo 3D ship in late spring or the summer.

Less worry exists over iPads, since few tablet competitors have emerged and have usually had tepid sales estimates that wouldn't repeat Android's success in phones.

Modest?

How is 4.69 million iPads in a quarter modest? I'm not an analyst firm, but I don't think there's another company out there selling between 1.5 and 1.6 million tablets per month. And that includes (as hayesk said) introducing a new hardware platform with subsequent product shortages. I'm happy for Apple, but I have to say I am amazed at the size of the market. Where do all of these millions of devices go in one quarter's time? Crazy!

No way - the galaxy tab doesn't even run Android 3.0 - Google's tablet OS.
The only Android tabs that run 3.0 - are all tied to expensive contracts that nobody wants.

That business model has failed - but Android as a tablet OS, certainly has not, and that will be obvious as $249-$349 - no contract required Honeycomb (Android 3.0) tablets finally hit the market in the next few months.

This thing has only just begun, and Android, will, *clearly* will repeat their success in smartphones in the tablet space as well.

As an Apple fan, I'd like them to move heaven and earth at this moment, to both clear up the supply issues on the 10" iPad AND release a 7" iPad in short order - selling 10 million iPads next quarter is the best way to fend off Android - not dreaming that the market has rejected Android - lol - that would be a foolish fantasy to engage in, at this critical moment.

Wow Jonathan is so mis-informed

iPad sales are disappointing because I want/think Apple should sell 1 billion iPads a year. If you believe that statement, then yes, iPad sales REALLY sucked last quarter.

I know that is a bit much so let's take a more realistic view:

iPad sales are disappointing because Apple should be selling a lot more. Ok, sure you want to see growth and if the iPad is to be successful it needs decent year-over-year growth. So what is "decent" year-over-year growth? Remember, this is a category that a year ago basically did not exist! Even if we consider some of the MS tablets offered years ago, just selling 500,000 in one year would have been a success! So if you can sell 4mil in a quarter that should be FANTASTIC! If you compare this to other devices in the category, Apple in this last quarter likely outsold all competition combined (I don't have the numbers but think total other tablet sales are under 1mil). Beating out your competition combined in one quarter by at least 4 fold seems pretty good to me.

Still, Apple came out and did sell approx 15 million in their first year so is this last quarter really good or bad since we don't have many other real competitors to compare against? Here too, if we take just this last quarter and extrapolate out at 4.6 million sales per quarter means Apple will sell this coming year about 18 million iPads. That is if sales stay at the same level. Compare that to last year and you are talking a 17%+ year-over-year growth. I think there are many companies - especially in this economy - that would love to see one segment of their business grow at that rate.

No, iPad sales are not disappointing. Could they have sold more, sure seems like it. Did they have some supply constraints - not for the original iPad, the iPad2 yes but that was only out for 2 weeks before the quarter ended. Did they see a reduction in sales volume this quarter like many other companies because it is after the holidays - probably. Did they also see a reduction in sales volume this quarter because many people likely held off buying an original iPad because the iPad2 was so widely rumored to be launched in March - very likely.

Are Android tablets a threat - sure, potentially they are and Apple does need to stay competitive. But if you think staying competitive is all about numbers of tablets sold or features then you have not been really understanding what Apple has done over the past 11 years. You likely won't get it and not understand why despite the increased number of Android phones, people still want and like the iPhone. Same will apply for the tablets *I think* and that is the bottom line about "disappointing" iPad sales. Some idiots pulled a number out of their collective arses and said "Apple should sell this many this quarter or I will be disappointed." Fine, your thinking is flawed in my opinion and you just keep thinking Butch.